Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Mar. 25, 2014 | Jun. 29, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'TOFUTTI BRANDS INC | ' | ' |
Entity Central Index Key | '0000730349 | ' | ' |
Trading Symbol | 'tof | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-Known Seasoned Issuer | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 5,153,706 | ' |
Entity Public Float | ' | ' | $3,784,899 |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $214 | $471 |
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $277 and $303 respectively | 1,954 | 1,880 |
Inventories, net of reserve of $150 and $100, respectively | 1,844 | 1,750 |
Prepaid expenses | 40 | 77 |
Deferred costs | 138 | 165 |
Refundable income taxes | ' | 331 |
Total current assets | 4,190 | 4,674 |
Other assets | 16 | 16 |
Total assets | 4,206 | 4,690 |
Current liabilities: | ' | ' |
Accounts payable | 877 | 446 |
Accrued expenses | 459 | 436 |
Deferred revenue | 153 | 183 |
Total current liabilities | 1,489 | 1,065 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued | ' | ' |
Common stock - par value $.01 per share; authorized 15,000,000 shares, issued and outstanding 5,153,706 shares at December 28, 2013, and 5,153,706 shares at December 29, 2012 | 52 | 52 |
Additional paid-in capital | ' | ' |
Retained earnings | 2,665 | 3,573 |
Total stockholders' equity | 2,717 | 3,625 |
Total liabilities and stockholders' equity | $4,206 | $4,690 |
BALANCE_SHEETS_Parentheticals
BALANCE SHEETS (Parentheticals) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts and sales promotions on accounts receivables (in dollars) | $277 | $303 |
Inventories, reserves (in dollars) | $150 | $100 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 5,153,706 | 5,153,706 |
Common stock, shares outstanding | 5,153,706 | 5,153,706 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Income Statement [Abstract] | ' | ' |
Net sales | $14,692 | $14,343 |
Cost of sales | 10,727 | 10,392 |
Gross profit | 3,965 | 3,951 |
Operating expenses: | ' | ' |
Selling and warehousing | 1,664 | 1,647 |
Marketing | 676 | 638 |
Product development costs | 585 | 643 |
General and administrative | 1,939 | 1,935 |
Total operating expenses | 4,864 | 4,863 |
Loss before provision for income tax | -899 | -912 |
Income tax expense (benefit) | 9 | -88 |
Net loss | ($908) | ($824) |
Weighted average common shares outstanding: | ' | ' |
Basic and diluted (in shares) | 5,154 | 5,154 |
Net loss per common share: | ' | ' |
Basic and diluted (in dollars per share) | ($0.18) | ($0.16) |
STATEMENTS_OF_CHANGES_IN_STOCK
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-In Capital | Retained Earnings | Total |
In Thousands, except Share data | ||||
Balances at Dec. 31, 2011 | $52 | ' | $4,413 | $4,465 |
Balance (shares) at Dec. 31, 2011 | 5,162,186 | ' | ' | ' |
Stock repurchase | ' | ' | -16 | -16 |
Stock repurchase (in Shares) | -8,480 | ' | ' | ' |
Net loss | ' | ' | -824 | -824 |
Balances at Dec. 29, 2012 | 52 | ' | 3,573 | 3,625 |
Balance (shares) at Dec. 29, 2012 | 5,153,706 | ' | ' | 5,153,706 |
Net loss | ' | ' | -908 | -908 |
Balances at Dec. 28, 2013 | $52 | ' | $2,665 | $2,717 |
Balance (shares) at Dec. 28, 2013 | 5,153,706 | ' | ' | 5,153,706 |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net (loss) income | ($908) | ($824) |
Adjustments to reconcile net (loss) income to net cash flows provided by (used in) operating activities: | ' | ' |
Amortization | ' | 5 |
Provision for bad debts and sales promotions | -26 | -183 |
Deferred taxes | ' | 265 |
Change in assets and liabilities: | ' | ' |
Accounts receivable | -48 | 239 |
Inventories | -94 | -309 |
Prepaid expenses | 64 | -120 |
Income taxes refundable | 331 | -289 |
Accounts payable and accrued expenses | 424 | 109 |
Net cash flows used in operating activities | -257 | -1,107 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Purchase of common stock | ' | -16 |
Net cash flows used in financing activities | ' | -16 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -257 | -1,123 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR | 471 | 1,594 |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | 214 | 471 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Income taxes paid | $6 | $6 |
LIQUIDITY_AND_CAPITAL_RESOURCE
LIQUIDITY AND CAPITAL RESOURCES | 12 Months Ended | |
Dec. 28, 2013 | ||
Liquidity and Capital Resources [Abstract] | ' | |
LIQUIDITY AND CAPITAL RESOURCES | ' | |
NOTE 1: | LIQUIDITY AND CAPITAL RESOURCES | |
At December 28, 2013, Tofutti Brands, Inc. (the “Company”) had approximately $214 in cash compared to $471 at December 29, 2012. Net cash used in operating activities for the year ended December 28, 2013 was $257 compared to $1,107 used in operating activities for the year ended December 29, 2012. Net cash used in operating activities for the year ended December 28, 2013 was primarily the result of our net loss of $908 as well as increases in inventory and accounts receivable, which were partially offset by decreases in prepaid expenses and income taxes refundable and an increase in accounts payable and accrued liabilities. | ||
During the year ended December 28, 2013, $0 was used in financing activities compared to $16 used in financing activities during the year ended December 29, 2012. | ||
The Company has historically financed operations and met capital requirements primarily through positive cash flow from operations. However, due to the net loss for the year ended December 28, 2013 and cash used in operations, the Company may require additional financing in order to accomplish or exceed their business plans for future periods. The Company is instituting cost cutting measures in fiscal year 2014 as a way to increase profitability in future periods. | ||
The Company’s ability to introduce successful new products may be adversely affected by a number of factors, such as unforeseen cost and expenses, economic environment, increased competition, and other factors beyond the Company’s control. Management cannot provide assurance that the Company will operate profitably in the future, or that it will not require significant additional financing in order to accomplish or exceed the objectives of its business plan. Consequently, the Company’s historical operating results cannot be relied on to be an indicator of future performance, and management cannot predict whether the Company will obtain or sustain positive operating cash flow or generate net income in the future. |
DESCRIPTION_OF_THE_BUSINESS_AN
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Description Of Business and Summary Of Significant Accounting Policies [Abstract] | ' | ||||||||
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||
NOTE 2: | DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Description of Business - Tofutti Brands Inc. (“Tofutti” or the “Company”) is engaged in one business segment, the development, production and marketing of nondairy frozen desserts and other food products. | |||||||||
Fiscal Year - The Company operates on a fiscal year ending on the Saturday closest to December 31st. Fiscal years for the financial statements included herein are the fifty-two week fiscal periods ended on December 28, 2013 and December 29, 2012, respectively. | |||||||||
Estimates and Uncertainties - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowance for doubtful accounts, sales promotion accruals, inventory reserves and reserves for uncertain tax positions. Actual results could differ from those estimates. | |||||||||
Revenue Recognition - Revenue is recognized when goods are shipped from production facilities or outside warehouses to customers. Revenue is recognized when the following four criteria under ASC 605 have been met: the product has been shipped and the Company has no significant remaining obligations; persuasive evidence of an arrangement exists; the price to the buyer is fixed or determinable; and collection is probable. Deductions from sales for promotional programs, manufacturers’ charge-backs, co-operative advertising programs and other programs are recorded as reductions of revenues and are provided for at the time of initial sale of product. Freight charged to customers is included in revenues, and has generally been insignificant. | |||||||||
Concentration of Credit/Sales Risk - Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and unsecured trade receivables. During the year, the Company’s cash balance at its financial institution exceeded the FDIC limit of $250. | |||||||||
The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral. Management feels that credit risk beyond the established allowances at December 28, 2013 is limited. | |||||||||
During the fiscal years ended December 28, 2013 and December 29, 2012, the Company derived approximately 84% and 86%, respectively, of its net sales domestically. The remaining sales in both periods were exports to foreign countries. The accounts receivable balance of one customer represented approximately 8% of total accounts receivable at December 28, 2013 and 11% of total accounts receivable at December 29, 2012. In addition, a significant portion of the Company’s sales are to several key distributors, which are large distribution companies with numerous divisions and subsidiaries who act independently. Such distributors as a group accounted for 45% and 45% of the Company’s net sales for the fiscal years ended December 28, 2013 and December 29, 2013. | |||||||||
Accounts Receivable - The majority of the Company’s accounts receivables are due from distributors (domestic and international) and retailers. Credit is extended based on evaluation of a customers’ financial condition and, generally, collateral is not required. Accounts receivable are most often due within 30 to 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the bad debt expense. The Company does not accrue interest on accounts receivable past due. | |||||||||
Deferred Revenue and Deferred Costs - Deferred revenue represents amounts from sales of the Company’s product that have been billed and shipped, but for which the transactions have not met its revenue recognition criteria. The cost of the related product has been recorded as deferred costs on its balance sheet. | |||||||||
Cash and Equivalents - The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | |||||||||
Inventories - Inventory is stated at lower of cost or market determined by first in first out (FIFO) method. Inventories in excess of future demand are written down and charged to the provision for inventories. At the point of which loss is recognized, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in the newly established cost basis. | |||||||||
The Company purchased approximately 27% and 26% of its finished products from one supplier and 28% and 30% of its finished products from another supplier during the periods ended December 28, 2013 and December 29, 2012, respectively. | |||||||||
Income Taxes - Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded if there is uncertainty as to the realization of deferred tax assets. The Company will recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes. | |||||||||
Net Income Per Share - Basic earnings per common share has been computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share has been computed by dividing net income by the weighted average number of common shares outstanding, including the dilutive effects of stock options. | |||||||||
Fiscal Year | Fiscal Year | ||||||||
Ended | Ended | ||||||||
December 28, | 29-Dec-12 | ||||||||
2013 | |||||||||
Net (loss) income, numerator, basic and diluted computation | $ | (908 | ) | $ | (824 | ) | |||
Weighted average shares - denominator basic computation | 5,154 | 5,154 | |||||||
Effect of dilutive stock options | — | — | |||||||
Weighted average shares, as adjusted - denominator diluted computation | 5,154 | 5,154 | |||||||
Net (loss) income per common share: | |||||||||
Basic | $ | (0.18 | ) | $ | (0.16 | ) | |||
Diluted | $ | (0.18 | ) | $ | (0.16 | ) | |||
Fair Value of Financial Instruments - The fair value of financial instruments, which primarily consist of cash and equivalents, accounts receivable and accounts payable are stated at their carrying values. The carrying amounts approximate fair value because of the short-term nature of those instruments. | |||||||||
Freight Costs - Freight costs to ship inventory to customers and to outside warehouses amounted to $1,099 and $989 during the fiscal years ended December 28, 2013 and December 29, 2012, respectively. Such costs are included in costs of goods sold. | |||||||||
Advertising Costs - The Company expenses advertising costs as they are incurred. Advertising expenses amounted to $323 and $279 during the fiscal years ended December 28, 2013 and December 29, 2012, respectively. | |||||||||
Product Development Costs - Costs of new product development and product redesign are charged to expense as incurred. Product development costs amounted to $585 and $643 during the fiscal years ended December 28, 2013 and December 29, 2012, respectively. | |||||||||
Recent Accounting Pronouncements - Accounting Standards Updates that became effective during fiscal 2013 or after are not expected to have a significant effect on the Company’s financial position or results of operations. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
NOTE 3: | INVENTORIES | ||||||||
Inventories consist of the following: | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Finished products | $ | 1,342 | $ | 1,099 | |||||
Raw materials and packaging | 502 | 651 | |||||||
$ | 1,844 | $ | 1,750 |
STOCK_OPTIONS
STOCK OPTIONS | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||||||||
STOCK OPTIONS | ' | ||||||||||||||||||||
NOTE 4: | STOCK OPTIONS | ||||||||||||||||||||
The Company’s shareholders adopted the 2004 Non-Employee Directors’ Stock Option Plan (the “2004 Directors’ Plan”) on June 3, 2004. The purpose and intent of the 2004 Directors’ Plan is to attract and retain the best available individuals as non-employee directors of the Company, to provide additional incentive to non-employee directors to continue to serve as directors and to encourage their continued service on the Board. All options granted under 2004 Directors’ Plan are “non-qualified stock options.” The maximum aggregate number of shares of common stock which may be issued under the 2004 Directors’ Plan is 100,000 shares. The maximum term of any option under the plan is five years, and generally vests over a period of three years. | |||||||||||||||||||||
The following is a summary of stock option activity from December 31, 2011 to December 28, 2013: | |||||||||||||||||||||
1993 PLAN | 2004 DIRECTORS’ PLAN | ||||||||||||||||||||
INCENTIVE OPTIONS | NON-QUALIFIED | ||||||||||||||||||||
OPTIONS | |||||||||||||||||||||
Shares | Weighted | Shares | Weighted Average | Total | |||||||||||||||||
Average | Exercise | Aggregate Intrinsic | |||||||||||||||||||
Exercise | Price ($) | Value ($) | |||||||||||||||||||
Price ($) | |||||||||||||||||||||
Outstanding at December 31, 2011 | — | — | 41,000 | 2.9 | — | ||||||||||||||||
Exercisable at December 31, 2011 | — | — | 41,000 | 2.9 | — | ||||||||||||||||
Expired in fiscal 2012 | — | — | 41,000 | 2.9 | — | ||||||||||||||||
Outstanding at December 29, 2012 | — | — | 0 | — | — | ||||||||||||||||
Exercisable at December 29, 2012 | — | — | 0 | — | — | ||||||||||||||||
Expired in fiscal 2013 | — | — | 0 | — | — | ||||||||||||||||
Outstanding at December 28, 2013 | — | — | 0 | — | — | ||||||||||||||||
There were no stock options granted in the last two fiscal years, and no options were outstanding as of year-end, December 28, 2013. |
LEASES
LEASES | 12 Months Ended | |
Dec. 28, 2013 | ||
Leases [Abstract] | ' | |
LEASES | ' | |
NOTE 5: | LEASES | |
The Company’s facilities are located in a one-story facility in Cranford, New Jersey. The 6,200 square foot facility houses its administrative offices, a warehouse, walk-in freezer and refrigerator, and a product development laboratory and test kitchen. The Company’s original lease agreement expired on July 1, 1999, but it continues to occupy the premises under the terms of that agreement. Any changes by either the landlord or the Company remains subject to a six month notification period. The Company currently has no plans to enter into a long-term lease agreement for the facility. Rent expense was $81 in 2013 and $81 in 2012. The Company’s management believes that the Cranford facility will continue to satisfy its space requirements for the foreseeable future and that if necessary, such space can be replaced without a significant impact to the business. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
NOTE 6: | INCOME TAXES | ||||||||
The components of income tax expense (benefit) for the fiscal years ended December 28, 2013 and December 29, 2012 are as follows: | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | 9 | $ | (334 | ) | ||||
State | — | — | |||||||
9 | (334 | ) | |||||||
Deferred: | |||||||||
Federal | 191 | ||||||||
State | 55 | ||||||||
246 | |||||||||
Total income tax expense (benefit) | $ | 9 | $ | (88 | ) | ||||
A reconciliation between the expected federal tax expense at the statutory tax rate of 34% and the Company’s actual tax expense for the fiscal years ended December 28, 2013 and December 29, 2012 follows: | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Income tax expense computed at federal statutory rate | $ | (322 | ) | $ | (310 | ) | |||
State income taxes, net of federal income tax benefit | 2 | 21 | |||||||
Permanent items | 12 | 16 | |||||||
Change in federal valuation allowance | 317 | 172 | |||||||
Other items | — | 13 | |||||||
$ | 9 | $ | (88 | ) | |||||
Deferred tax assets for the fiscal years ended December 28, 2013 and December 29, 2012 consist of the following components: | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Allowance for doubtful accounts | $ | 100 | $ | 109 | |||||
Inventory | 94 | 80 | |||||||
Federal and state net operating loss | 347 | 16 | |||||||
Other | 6 | 6 | |||||||
Valuation allowance | (547 | ) | (211 | ) | |||||
Deferred tax asset | $ | — | $ | — | |||||
Management has concluded that based upon all available evidence it is more likely than not that deferred tax assets will not be utilized. The Company has recorded an increase in the valuation allowance in the amount of $336 during the year ended December 28, 2013. The remaining deferred tax asset is offset by the federal unrecorded tax benefit. | |||||||||
The Company will recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes. | |||||||||
The following table indicates the changes to the Company’s uncertain tax positions for the fiscal years ended December 28, 2013 and December 29, 2012: | |||||||||
Balance at December 31, 2011 | $ | 253 | |||||||
Reduction based on tax positions | (62 | ) | |||||||
taken in a prior year | |||||||||
Balance at December 29, 2012 | $ | 191 | |||||||
Reduction due to the expiration of the statute of limitations | (13 | ) | |||||||
Balance at December 28, 2013 | $ | 178 | |||||||
The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes. The Company had approximately $91 and $115 of accrued interest and penalties related to uncertain tax positions at December 28, 2013 and December 29, 2012, respectively. The amount of uncertain tax positions that would affect the effective tax rate if they were recognized is $269. | |||||||||
The liability at December 28, 2013 for uncertain tax positions is included in accrued expenses. The Company’s federal and state tax returns are open to examination for the years 2010 to 2013. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |
Dec. 28, 2013 | ||
Related Party Transactions [Abstract] | ' | |
RELATED PARTY TRANSACTIONS | ' | |
NOTE 7: | RELATED PARTY TRANSACTIONS | |
Effective October 1, 2012, the Company entered into an agreement with a director pursuant to which the director agreed to provide it with certain consulting and business development services relating to the introduction of the Company to potential users, licensees, and co-developers of its products. Under this agreement, which terminated on September 30, 2013, the director was entitled to receive a 10% commission on sales if the Company entered into a licensing agreement with a third party and a 5% commission on sales to a third party that does not enter into a license agreement with it. No payments were made under such provisions during the year ended December 28, 2013, but in the event such agreements are entered into in the three years subsequent to September 30, 2013, the Company would be obligated to pay the director such commissions for revenues arising out of relationships he initiated. In addition, the Company agreed that if the director is instrumental in the sale of any of its securities to a third party, the Company would enter into an agreement to compensate him for such services, based upon the fair market value of such services. The Company paid him an expense allowance of $2,500 a month and paid him a total of $7,500 in the year ended December 29, 2012 and $22,500 in the year ended December 28, 2013. This agreement was approved by the Company’s audit committee and board of directors, with the director abstaining from such consideration. |
DESCRIPTION_OF_THE_BUSINESS_AN1
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Description Of Business and Summary Of Significant Accounting Policies [Abstract] | ' | ||||||||
Fiscal Year | ' | ||||||||
Fiscal Year - The Company operates on a fiscal year ending on the Saturday closest to December 31st. Fiscal years for the financial statements included herein are the fifty-two week fiscal periods ended on December 28, 2013 and December 29, 2012, respectively. | |||||||||
Estimates and Uncertainties | ' | ||||||||
Estimates and Uncertainties - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowance for doubtful accounts, sales promotion accruals, inventory reserves and reserves for uncertain tax positions. Actual results could differ from those estimates. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition - Revenue is recognized when goods are shipped from production facilities or outside warehouses to customers. Revenue is recognized when the following four criteria under ASC 605 have been met: the product has been shipped and the Company has no significant remaining obligations; persuasive evidence of an arrangement exists; the price to the buyer is fixed or determinable; and collection is probable. Deductions from sales for promotional programs, manufacturers’ charge-backs, co-operative advertising programs and other programs are recorded as reductions of revenues and are provided for at the time of initial sale of product. Freight charged to customers is included in revenues, and has generally been insignificant. | |||||||||
Concentration of Credit/Sales Risk | ' | ||||||||
Concentration of Credit/Sales Risk - Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and unsecured trade receivables. During the year, the Company’s cash balance at its financial institution exceeded the FDIC limit of $250. | |||||||||
The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral. Management feels that credit risk beyond the established allowances at December 28, 2013 is limited. | |||||||||
During the fiscal years ended December 28, 2013 and December 29, 2012, the Company derived approximately 84% and 86%, respectively, of its net sales domestically. The remaining sales in both periods were exports to foreign countries. The accounts receivable balance of one customer represented approximately 8% of total accounts receivable at December 28, 2013 and 11% of total accounts receivable at December 29, 2012. In addition, a significant portion of the Company’s sales are to several key distributors, which are large distribution companies with numerous divisions and subsidiaries who act independently. Such distributors as a group accounted for 45% and 45% of the Company’s net sales for the fiscal years ended December 28, 2013 and December 29, 2013. | |||||||||
Accounts Receivable | ' | ||||||||
Accounts Receivable - The majority of the Company’s accounts receivables are due from distributors (domestic and international) and retailers. Credit is extended based on evaluation of a customers’ financial condition and, generally, collateral is not required. Accounts receivable are most often due within 30 to 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the bad debt expense. The Company does not accrue interest on accounts receivable past due. | |||||||||
Deferred Revenue and Deferred Costs | ' | ||||||||
Deferred Revenue and Deferred Costs - Deferred revenue represents amounts from sales of the Company’s product that have been billed and shipped, but for which the transactions have not met its revenue recognition criteria. The cost of the related product has been recorded as deferred costs on its balance sheet. | |||||||||
Cash and Equivalents | ' | ||||||||
Cash and Equivalents - The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | |||||||||
Inventories | ' | ||||||||
Inventories - Inventory is stated at lower of cost or market determined by first in first out (FIFO) method. Inventories in excess of future demand are written down and charged to the provision for inventories. At the point of which loss is recognized, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in the newly established cost basis. | |||||||||
The Company purchased approximately 27% and 26% of its finished products from one supplier and 28% and 30% of its finished products from another supplier during the periods ended December 28, 2013 and December 29, 2012, respectively. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes - Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded if there is uncertainty as to the realization of deferred tax assets. The Company will recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes. | |||||||||
Net Income Per Share | ' | ||||||||
Net Income Per Share - Basic earnings per common share has been computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share has been computed by dividing net income by the weighted average number of common shares outstanding, including the dilutive effects of stock options. | |||||||||
Fiscal Year | Fiscal Year | ||||||||
Ended | Ended | ||||||||
December 28, | 29-Dec-12 | ||||||||
2013 | |||||||||
Net (loss) income, numerator, basic and diluted computation | $ | (908 | ) | $ | -824 | ||||
Weighted average shares - denominator basic computation | 5,154 | 5,154 | |||||||
Effect of dilutive stock options | — | — | |||||||
Weighted average shares, as adjusted - denominator diluted computation | 5,154 | 5,154 | |||||||
Net (loss) income per common share: | |||||||||
Basic | $ | (0.18 | ) | $ | -0.16 | ||||
Diluted | $ | (0.18 | ) | $ | -0.16 | ||||
Fair Value of Financial Instruments | ' | ||||||||
Fair Value of Financial Instruments - The fair value of financial instruments, which primarily consist of cash and equivalents, accounts receivable and accounts payable are stated at their carrying values. The carrying amounts approximate fair value because of the short-term nature of those instruments. | |||||||||
Freight Costs | ' | ||||||||
Freight Costs - Freight costs to ship inventory to customers and to outside warehouses amounted to $1,099 and $989 during the fiscal years ended December 28, 2013 and December 29, 2012, respectively. Such costs are included in costs of goods sold. | |||||||||
Advertising Costs | ' | ||||||||
Advertising Costs - The Company expenses advertising costs as they are incurred. Advertising expenses amounted to $323 and $279 during the fiscal years ended December 28, 2013 and December 29, 2012, respectively. | |||||||||
Product Development Costs | ' | ||||||||
Product Development Costs - Costs of new product development and product redesign are charged to expense as incurred. Product development costs amounted to $585 and $643 during the fiscal years ended December 28, 2013 and December 29, 2012, respectively. | |||||||||
Recent Accounting Pronouncements | ' | ||||||||
Recent Accounting Pronouncements - Accounting Standards Updates that became effective during fiscal 2013 or after are not expected to have a significant effect on the Company’s financial position or results of operations. |
DESCRIPTION_OF_THE_BUSINESS_AN2
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||
Dec. 28, 2013 | ||||||
Description Of Business and Summary Of Significant Accounting Policies [Abstract] | ' | |||||
Schedule of net income per share | ' | |||||
Fiscal Year | Fiscal Year | |||||
Ended | Ended | |||||
December 28, | 29-Dec-12 | |||||
2013 | ||||||
Net (loss) income, numerator, basic and diluted computation | $ | (908 | ) | $ | -824 | |
Weighted average shares - denominator basic computation | 5,154 | 5,154 | ||||
Effect of dilutive stock options | — | — | ||||
Weighted average shares, as adjusted - denominator diluted computation | 5,154 | 5,154 | ||||
Net (loss) income per common share: | ||||||
Basic | $ | (0.18 | ) | $ | -0.16 | |
Diluted | $ | (0.18 | ) | $ | -0.16 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||
Dec. 28, 2013 | |||||
Inventory Disclosure [Abstract] | ' | ||||
Schedule of inventory | ' | ||||
December 28, | December 29, | ||||
2013 | 2012 | ||||
Finished products | $ | 1,342 | $ | 1,099 | |
Raw materials and packaging | 502 | 651 | |||
$ | 1,844 | $ | 1,750 |
STOCK_OPTIONS_Tables
STOCK OPTIONS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||||||||
Schedule of stock option activity | ' | ||||||||||||||||||||
1993 PLAN | 2004 DIRECTORS’ PLAN | ||||||||||||||||||||
INCENTIVE OPTIONS | NON-QUALIFIED | ||||||||||||||||||||
OPTIONS | |||||||||||||||||||||
Shares | Weighted | Shares | Weighted Average | Total | |||||||||||||||||
Average | Exercise | Aggregate Intrinsic | |||||||||||||||||||
Exercise | Price ($) | Value ($) | |||||||||||||||||||
Price ($) | |||||||||||||||||||||
Outstanding at December 31, 2011 | — | — | 41,000 | 2.9 | — | ||||||||||||||||
Exercisable at December 31, 2011 | — | — | 41,000 | 2.9 | — | ||||||||||||||||
Expired in fiscal 2012 | — | — | 41,000 | 2.9 | — | ||||||||||||||||
Outstanding at December 29, 2012 | — | — | 0 | — | — | ||||||||||||||||
Exercisable at December 29, 2012 | — | — | 0 | — | — | ||||||||||||||||
Expired in fiscal 2013 | — | — | 0 | — | — | ||||||||||||||||
Outstanding at December 28, 2013 | — | — | 0 | — | — | ||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of components of income tax expense (benefit) | ' | ||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | 9 | $ | (334 | ) | ||||
State | — | — | |||||||
9 | (334 | ) | |||||||
Deferred: | |||||||||
Federal | 191 | ||||||||
State | 55 | ||||||||
246 | |||||||||
Total income tax expense (benefit) | $ | 9 | $ | (88 | ) | ||||
Schedule of reconciliation between the expected federal tax expense at statutory tax rate | ' | ||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Income tax expense computed at federal statutory rate | $ | (322 | ) | $ | (310 | ) | |||
State income taxes, net of federal income tax benefit | 2 | 21 | |||||||
Permanent items | 12 | 16 | |||||||
Change in federal valuation allowance | 317 | 172 | |||||||
Other items | — | 13 | |||||||
$ | 9 | $ | (88 | ) | |||||
Schedule of deferred tax assets | ' | ||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Allowance for doubtful accounts | $ | 100 | $ | 109 | |||||
Inventory | 94 | 80 | |||||||
Federal and state net operating loss | 347 | 16 | |||||||
Other | 6 | 6 | |||||||
Valuation allowance | (547 | ) | (211 | ) | |||||
Deferred tax asset | $ | — | $ | — | |||||
Schedule of changes to company's uncertain tax positions | ' | ||||||||
Balance at December 31, 2011 | $ | 253 | |||||||
Reduction based on tax positions | (62 | ) | |||||||
taken in a prior year | |||||||||
Balance at December 29, 2012 | $ | 191 | |||||||
Reduction due to the expiration of the statute of limitations | (13 | ) | |||||||
Balance at December 28, 2013 | $ | 178 |
LIQUIDITY_AND_CAPITAL_RESOURCE1
LIQUIDITY AND CAPITAL RESOURCES (Detail Textuals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Liquidity and Capital Resources [Abstract] | ' | ' | ' |
Cash and cash equivalents | $214 | $471 | $1,594 |
Net cash used in operating activities | -257 | -1,107 | ' |
Net loss | -908 | -824 | ' |
Net cash used in financing activities | ' | ($16) | ' |
DESCRIPTION_OF_THE_BUSINESS_AN3
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Description Of Business and Summary Of Significant Accounting Policies [Abstract] | ' | ' |
Net (loss) income, numerator, basic and diluted computation | ($908) | ($824) |
Weighted average shares - denominator basic computation | 5,154 | 5,154 |
Effect of dilutive stock options | ' | ' |
Weighted average shares, as adjusted - denominator diluted computation | 5,154 | 5,154 |
Net (loss) income per common share: | ' | ' |
Basic (in dollars per share) | ($0.18) | ($0.16) |
Diluted (in dollars per share) | ($0.18) | ($0.16) |
DESCRIPTION_OF_THE_BUSINESS_AN4
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Segment | ||
Description Of Business and Summary Of Significant Accounting Policies [Abstract] | ' | ' |
Number of business segment | 1 | ' |
Cash, FDIC insured amount | $250 | ' |
Freight costs | 1,099 | 989 |
Advertising costs | 323 | 279 |
Product development costs | $585 | $643 |
DESCRIPTION_OF_THE_BUSINESS_AN5
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Customer Concentration Risk | Accounts Receivable | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of concentration risk | 8.00% | 11.00% |
Supplier Concentration Risk | Finished products | One Supplier | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of concentration risk | 27.00% | 26.00% |
Supplier Concentration Risk | Finished products | Another supplier | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of concentration risk | 28.00% | 30.00% |
Domestic | Net sales | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of concentration risk | 84.00% | 86.00% |
Distributors as a group | Net sales | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of concentration risk | 45.00% | 45.00% |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished products | $1,342 | $1,099 |
Raw materials and packaging | 502 | 651 |
Inventories, net | $1,844 | $1,750 |
STOCK_OPTIONS_Details
STOCK OPTIONS (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Weighted Average Exercise Price | ' | ' |
Total Aggregate Intrinsic Value, Outstanding | ' | ' |
Total Aggregate Intrinsic Value, Exercisable | ' | ' |
1993 PLAN INCENTIVE OPTIONS | ' | ' |
Shares | ' | ' |
Outstanding | ' | ' |
Exercisable | ' | ' |
Expired | ' | ' |
Outstanding | ' | ' |
Exercisable | ' | ' |
Weighted Average Exercise Price | ' | ' |
Outstanding | ' | ' |
Exercisable | ' | ' |
Expired | ' | ' |
Outstanding | ' | ' |
Exercisable | ' | ' |
2004 DIRECTORS' PLAN NON-QUALIFIED OPTIONS | ' | ' |
Shares | ' | ' |
Outstanding | 0 | 41,000 |
Exercisable | 0 | 41,000 |
Expired | 0 | 41,000 |
Outstanding | 0 | 0 |
Exercisable | ' | 0 |
Weighted Average Exercise Price | ' | ' |
Outstanding | ' | $2.90 |
Exercisable | ' | $2.90 |
Expired | ' | $2.90 |
Outstanding | ' | ' |
Exercisable | ' | ' |
STOCK_OPTIONS_Detail_Textuals
STOCK OPTIONS (Detail Textuals) (2004 Non-Employee Directors' Stock Option Plan) | 12 Months Ended |
Dec. 28, 2013 | |
2004 Non-Employee Directors' Stock Option Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Maximum number of shares of common stock which may be issued | 100,000 |
Maximum term of option under the plan | '5 years |
Vesting period of option | '3 years |
LEASES_Detail_Textuals
LEASES (Detail Textuals) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
sqft | ||
Leases [Abstract] | ' | ' |
Area of facility houses | 6,200 | ' |
Rent expense | $81 | $81 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Current: | ' | ' |
Federal | $9 | ($334) |
State | ' | ' |
Total, Current | 9 | -334 |
Deferred: | ' | ' |
Federal | ' | 191 |
State | ' | 55 |
Total, Deferred | ' | 265 |
Total income tax expense (benefit) | $9 | ($88) |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Income tax expense computed at federal statutory rate | ($322) | ($310) |
State income taxes, net of federal income tax benefit | 2 | 21 |
Permanent items | 12 | 16 |
Change in federal valuation allowance | 317 | 172 |
Other items | ' | 13 |
Total income tax expense | $9 | ($88) |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets, Tax Deferred Expense [Abstract] | ' | ' |
Allowance for doubtful accounts | $100 | $109 |
Inventory | 94 | 80 |
Federal and state net operating loss | 347 | 16 |
Other | 6 | 6 |
Valuation allowance | -547 | -211 |
Deferred tax asset | ' | ' |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Uncertain tax positions | ' | ' |
Balance at December 29, 2012 | $191 | $253 |
Reduction based on tax positions taken in a prior year | ' | -62 |
Reduction due to the expiration of the statute of limitations | -13 | ' |
Balance at December 28, 2013 | $178 | $191 |
INCOME_TAXES_Detail_Textuals
INCOME TAXES (Detail Textuals) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Federal tax expense, statutory tax rate | 34.00% | 34.00% |
Penalties or interest related to uncertain tax positions | $91 | $115 |
Uncertain tax positions that would affect the effective tax rate | 269 | ' |
Increase in valuation allowance | $336 | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Detail Textuals) (Director, USD $) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | |
Director | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Percentage of commission payable to directors on sales if the company entered into a licensing agreement with third party | 10.00% | ' | ' |
Percentage of commission payable to directors on sales if the company does not entered into a licensing agreement with third party | 5.00% | ' | ' |
Expense allowance per month | $2,500 | ' | ' |
Expense allowance paid | ' | $22,500 | $7,500 |